BROS(SH:601339) Shenwan Hongyuan Securities·2025-10-31 12:22Investment Rating - The report maintains a "Buy" rating for the company [5]. Core Insights - The company is experiencing short-term profit compression due to price reductions aimed at inventory destocking, but it has strong cash flow recovery [5]. - The company's overseas operations, particularly in Vietnam, show significantly better profitability compared to domestic operations, highlighting the competitive advantage of its production capacity in Vietnam [5]. - The report anticipates a rebound in cotton prices, which could positively impact profitability, given the current low inventory levels [5]. Financial Data and Earnings Forecast - Total revenue for 2025 is projected at 79.8 billion yuan, with a year-on-year growth rate of 0.5% [4]. - The net profit attributable to the parent company is expected to reach 7.02 billion yuan in 2025, reflecting a substantial year-on-year growth of 71.1% [4]. - The gross margin is forecasted to improve to 16.8% in 2025, up from 13.4% in the first three quarters of 2025 [4][5]. - The company’s return on equity (ROE) is projected to be 7.1% in 2025, increasing to 8.3% by 2027 [4]. Market Data - As of October 30, 2025, the closing price of the company's stock is 5.68 yuan, with a market capitalization of 8.518 billion yuan [5]. - The stock has a price-to-book ratio of 0.9 and a dividend yield of 7.22% [5].